1. Proposed TIF-Funded Road Improvements: TIF 7 North Tarrant Parkway Presented by Jay Chapa, Assistant City Manager April 12, 2016

2. 2 TIF Overview Purpose of TIF 7: to provide regional mobility infrastructure improvements to support property development Created in 2003, Expanded in 2008 Ends: 12/31/2019 Participation: City80% TRWD80% County80% Base Taxable Value: $ 1,283,324 Current Taxable Value:$600,156,343

3. 3 Original TIF Projects and Projections Projected TIF Increment: City 80% 33.7M TRWD80%.8M County80%19.7M Total:$54.2M

4. 4 TIF Projects to Date

5. TIF 7 Revenues and Expenditures 5 All increment must be obligated by the Board prior to TIF’s end or funds are distributed proportionally back to contributing entities. Current projection: $19 million to be available for projects.

6. 6 Issues TIF Board has identified priority projects to be undertaken in the area Identified projects exceed estimated TIF funding through life of the TIF District Interest has emerged to extend TIF term in order to increase funding to cover all projects Delivery of projects occurs slowly as cash is available from TIF

7. 7 North Riverside Drive Phase 4 North Riverside Drive Phase 4 from Shiver Road to North Tarrant Parkway, and Intersection Improvements at North Riverside Drive and North Tarrant Parkway Total: $6.4 million TIF 7 Funds: $6.4 million

8. 8 North Riverside Drive Landscaping North Riverside Drive Phase 2 and 3 Landscaping (remaining portion) Total: $400,000 TIF 7 Funds: $400,000 Golden Triangle Blvd North Tarrant Pkwy

9. 9 Harmon Road Design Harmon Road Design from US 81/US 287 to Golden Triangle Boulevard, and Design Intersection at Harmon Road and Heritage Trace Parkway Total: $4.5 million TIF 7 Funds: $4.5 million

10. 10 Harmon Road Construction Harmon Road ROW Acquisition Harmon Road Construction (partially funded by TIF) All remaining TIF funding will be allocated to this project. Total: $17.5 million TIF 7 Funds est.: $8.0 million

11. 11 Proposed Projects PROJECTESTIMATED TOTAL ESTIMATED TIF FUNDING Shortfall North Riverside Drive Phase 4 and Intersection Improvements at North Tarrant Parkway $6.4 million NA North Riverside Drive Phase 2 and 3 Landscaping (remaining portion) $400,000 NA Harmon Road Design and Intersection at Heritage Trace Parkway Design $4.5 million NA Harmon Road ROW Acquisition and Portion of Construction* $17.5 million$8.0 million +/--$9.5 million TOTAL$28.8 million$19.3 million +/-- $9.5 million

12. 12 Staff Recommendation Include the TIF priority projects in the City’s Five Year CIP Enter into a development agreement with the TIF Board to construct all of the identified projects with all TIF revenues committed as majority of funding source Utilize TIF funds as receivables available to forward fund construction projects to accelerate schedule Allow TIF District to end as scheduled

13. 13 Proposed Projects PROJECTESTIMATED TOTAL ESTIMATED TIF FUNDING OTHER FUNDING North Riverside Drive Phase 4 and Intersection Improvements at North Tarrant Parkway $6.4 million NA North Riverside Drive Phase 2 and 3 Landscaping (remaining portion) $400,000 NA Harmon Road Design and Intersection at Heritage Trace Parkway Design $4.5 million NA Harmon Road ROW Acquisition and Portion of Construction* $17.5 million$8.0 million +/-Future Bond/Impact Fee/ Other: $9.5 million +/- TOTAL$28.8 million$19.3 million +/-$9.5 million +/- *Note: all remaining TIF funding will be allocated to this project

14. 14 Impact of Forward Funding by City Timing with TIF agreements now and City forward funding Timing without City forward funding N. Riverside Landscaping: Start Project 2016201720182019 2016201720182019 Harmon and Heritage Trace Intersection: Start Construction Harmon & Riverside Arterials: Begin ROW Acquisition & Utility Relo Potential Bond Program Harmon Arterial: Start Construction Road Projects: Start Design Harmon & Riverside Arterials: Complete ROW Acquisition and Utility Relocation – Start Construction on Riverside Construction Complete in 2024 Construction Complete in 2021 Road Projects Start Design Harmon and Heritage Trace Intersection: Start Construction Harmon & Riverside Arterials: Begin ROW Acquisition and Utility Relocation

15. 15 TIF District Expiration Expiration of TIF Districts provides flexibility Estimated $7.5 million in additional property tax revenue will flow to the General Fund in FY2021 $7.5 million could be used to reduce property tax rate –$4.8 million = $0.01 –$7.5 million = $0.0156 Staff recommendation is to plan on reducing the tax rate by a minimum of ½ cent at the expiration of the TIF District

16. Proposed TIF-Funded Road Improvements: TIF 7 North Tarrant Parkway Questions/Comments/Conclusion